These post office savings schemes beat banks in paying interest, these are 3 best post office saving schemes

Almost all the saving schemes of the post office beat the banks in terms of interest. But these 3 savings of the post office are the best, because by investing in them, you get an income tax deduction benefit of up to Rs 1.5 lakh under Section 80C of the Income Tax Act. These 3 best saving schemes of post office are Post Office Time Deposit, Public Provident Fund i.e. PPF and NSC i.e. National Saving Certificate.

Let us tell you that banks get a maximum of 5.5% interest on fixed deposits of 5 years or more. SBI 5.4%, HDFC 5.5%, ICICI 5.25% interest on FDs above 5 years. While 6.8% interest is available on the post office time deposit.

Post office time deposit

Apart from banks, you can also get a fixed deposit in the post office, which is called post office time deposit. But the difference between the two is that you can get FDs in banks ranging from a minimum of 7 days to 28 days to FDs maturing in 10 days.

At the same time, time deposit in post office has to be done for a minimum of 1 year and maximum of 5 years. The post office revises the interest rates received on the time deposit every third month and keeps making changes in it.

Get so much interest

The interest rates on time deposits of the post office are effective from April 1, 2021. The post office pays 5.5% interest to depositors on time deposits of 1 year duration. At the same time, investors get 5.5% interest only on the deposit period of 2 years and 3 years. But depositors get 6.8% interest on investing in a post office time deposit for 5 years.

National Savings Certificate (NSC)

Depositors get guaranteed returns by investing in National Savings Certificate (NSC) for 5 years. Currently NSC is getting 6.8% per annum interest, which is available on maturity, but the returns are calculated on compound interest annually. Due to which those investing in it get tremendous returns.
However, the amount received at maturity is taxable.

However, when you have invested the amount of interest again in it, it becomes tax free. In this you can deposit a minimum of 1000 rupees. In this scheme, any person can open multiple accounts while they can open 3 joint accounts.

Public Provident Fund (PPF)

Public Provident Fund (PPF) can, however, be opened in both banks and post offices. One of the most popular long term debt investment products available in India. One of the biggest advantages of PPF is that it gives guaranteed tax-free returns, which you do not get in other long term investment instruments like NPS, mutual funds.

Investment up to Rs 1.5 lakh in PPF every year is tax-exempt under Section 80C of the Income Tax Act. Both the interest and maturity amount earned in PPF are tax deductible. Subscribers can take a loan on a PPF account at an appropriate interest rate.

This is especially beneficial for those who want to apply for a short-term loan. PPF is the most suitable investment option for self-employed professionals and EPFO ​​employees. But there is a problem in this that investors have to open it for a long term i.e. 15 years.

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